History
Leaders, particularly in business, are usually not beaten, but beat themselves.
Sony, having lost every format war since the dawn of the digital age, thought they would use their dominent role in the games business to win this one by tying their new game console to it. It backfired. Exactly the opposite happened. Another Sony digital format will bite the dust, and it will take their games division with it.
As far as the Xbox goes, it is easy to use their fans' propaganda against them...
1. The Xbox has more good games.
2. The Wii is not a "next-gen" console
Number 1 is true, as the Wii has few good games and NO great games yet, but instead of that being good, that is a minus (if you are a Microsoft fan) when looking at what is actually happening. DESPITE the fact the 360 has more good games and DESPITE the fact the 360 core is now as cheap as the Wii in some parts of the world, the Wii is kicking the 360's ass by over a two to one margin worldwide. Not good stats if you are MS or a fan, When Metroid comes out next week, Wii sales will skyrocket again. Since Nintendo hasn't been able to ramp up production as planned, there will be massive shortages again and Wiis will be selling for $400 on Ebay. Wii will be in the news again. The legend continues.
Number 2 is just crap. Who doesn't have a wireless connection? 360. Who doesn't have a browser? 360. My latest FREE cell phone has a wireless connection and a browser for criminy. Who uses the old fashioned disk tray for loading? 360. Which system uses the same old tired controller layout that has been used forever now? 360. Which of the current crop is not "next-gen"? 360. This goes back to the same thing as Sony. Bill wants to protect his main hog, Windows. He doesn't want too many "computer" features in the game machine.
Some guy here said "if it doesn't have super dooper high res, who would want it?" The answer is, my friend, almost everybody. The number of people with a high res screen is currently small. To everyone else in the world, high res is worthless.
Here is what will happen. The Wii will soon gain total dominance. In 2 or 3 years, the number of people who have high res will rise dramatically. By then the Blu-ray vs HD-DVD thing will be settled. By then the cost of both high definition input and output will be massively reduced. Nintendo will come out with the Wiii (notice 3 i ) (for $199) which will be backward compatible with the Wii, and continue their dominance for another 10 years. Having shot themselves in the foot once (cartridge/compatibility), they probably won't do it again soon, particularly since they don't have other business units to cloud their thinking like MS and Sony.
Crystal ball off. : -)